Coinshares shows that both sectors maintain a close relationship of reciprocity which drives both industries
A recent study, conducted by the prestigious cryptocurrency market research company CoinShares, revealed that 74% of the energy used for Bitcoin mining (BTC) comes from renewable generation sources.
The study also reveals that in terms of the rise in current BTC prices, it turns out to be an extremely profitable business. In this way, comparing the energy that is required to conduct the mining process, the document issued by the company reads as follows: “At current prices, the average miner is highly profitable, even with older equipment and high-cost producers that can currently have a positive Return on Investment (ROI)”.
Among the data highlighted in the study, it was also discovered that all operations linked to mining processes are much more concentrated in places where green energy is more accessible and used in greater quantities. This suggests that in these places miners take advantage of the characteristics of the area to improve their work and, in addition, contribute with the environment.
On this matter, the statement explains: “The estimate of renewable energies has fallen from 77.8%, comparing with our report of November 2018. It reflects a greater visibility of the industry on our part, as well as movements within it”.
The close relationship between renewable energies and Bitcoin’s mining work builds a whole machinery that drives the entire industry and sustains the development of green energy generation. In addition, they assure that this reciprocity makes it one of the industries most supported by renewable energies in the whole world.
Among other relevant aspects, the report states that there was a significant increase in the network of users. This data indicates an increase of 40 quintillions of hashes per second (EH / s) to around 50 EH / s, from November of last year until the date of completion of the study.
This means that the computing power for digital mining in the network has been much slower compared to the one of about 10 years ago, but it would be more stable compared to 5 years ago.
It should also be noted that there was a decrease in the hashrate (a unit to measure the processing power of the bitcoin network) by at least 40%, recording this information from last year. They claim to be the first instance to register this important decrease in the computer network.
The study argues that the increase in the computing power of the Bitcoin network is the result of the previous mining hardware, which work again once bitcoin prices increase in value and become more profitable.
Among some other factors is the use of all circuits used in the next generation of the Application Specific Integrated Circuits (ASIC), which makes this process even more effective.
The use of renewable energies contributes with the preservation of the environment and also makes possible to increase the number of miners and the operations to obtain and trade cryptocurrencies, which are accepted in different countries, such as Malta, and in web pages as a valid payment method. These digital assets are taking more presence every day and get them is now something very important for users.
By María Rodríguez